Computer giant Hewlett-Packard Co. (HPQ) agreed to acquire software company Peregrine Systems Inc. (search) for $425 million, or $26.08 a share.

Palo Alto-based HP said it will pay $26.08 for each Peregrine share. Peregrine, which is traded on the Pink Sheets (search), closed Friday at $19.10.

Upon the transaction's expected 2006 first-quarter close, Peregrine's IT asset and service management software portfolio will be integrated into the HP OpenView business unit.

San Diego-based Peregrine, which has nearly 700 employees, reported sales of $191.1 million for the fiscal year ended March 31.

HP also agreed to acquire ApplQ Inc. (search) , a company that provides open storage area network management and storage resource management technologies, for an undisclosed amount.

ApplQ, based in Burlington, Mass., has about 250 offices in Great Britain, Hong Kong, Singapore and India. An ApplQ spokeswoman declined to provide the company's revenue figures.

HP plans to integrate ApplQ's 135 employees into its operations.

The transaction is expected to be completed in about 45 days. Following completion, the ApplQ business will be fully integrated into HP Technology Solutions Group's StorageWorks division.

HP shares rose 42 cents, or 1.5 percent, to $28.76 on the New York Stock Exchange.